Thursday, November 4, 2010

Buying on PULLBACK!

At Bursa Malaysia, property stocks may stage a mild pullback in a knee jerk reaction to Bank Negara Malaysia's (BNM) caution to lenders against irresponsible lending practices which would contribute to the build-up of excessive leverage among households.
- BNM is imposing with immediate effect the maximum loan-to-value (LTV) ratio of 70% for the third house financing facility taken by a borrower as it seeks to curb "excessive investment and speculative activity in the residential property market".
- The central bank said on Wednesday, the move was expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations.
- Economists said there could be a pullback on property stocks following the imposition of the LTV ratio, which they said was necessary.

for me ,it is time to buy on pullback,but what is pullback? newspaper, forum, websites, blogs etc everywhere you can see the word---PULLBACK

I check it from investopedia
http://www.investopedia.com/terms/p/pullback.asp

What Does Pullback Mean?
A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum.

Investopedia explains Pullback
Often pullbacks are seen as buying opportunities after a security has had a large upward price movement. It is important, however, to analyze closely any pullback as it may be a sign of a definite trend reversal or a slight pause in the upward trend, each having very different trading implications.

So it is not that easy to buy at pullback, better dig up those overpulled, enough pulled, no more pulled before buying,llet start looking or rather pulling!

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